Post Profile






Assessing the impact of exchange rate movements

It is well-established in theoretical and empirical models that an exchange rate movement affects exports, but we are far from a consensus on the size and relevance of this effect. Macro-based analyses tend to yield very low values for the elasticity of exports to the exchange rate, while micro- or sectoral-based estimations tends to be higher. This column shows that one reason for the disagreement is that macro estimations fail to incorporate the characteristics of the underlying distribution of firm productivity and its asymmetries.
read more

share

Related Posts


Using rules of thumb for exchange rate pass-through could be misleading

Business & Finance / Economics : Vox

A major challenge for monetary policy is predicting how exchange rate movements will impact inflation. This column explains why rules of thumb could be misleading and proposes a new approach that incorporates the source of exchange ...

Exchange rate devaluations: When they can work and why

Business & Finance / Economics : Vox

The effect of exchange rate devaluations on a country’s exports is frequently debated, with some supporting a strong impact and others suggesting no sizeable response of exports to relative price changes. This column argues that fir...

Exchange rates and utilisation of free trade agreements

Business & Finance / Economics : Vox

Some exporters prefer to use most-favoured nation rates even when exporting to a fellow member of a free trade agreement. This column analyses the effect of exchange rates on the utilisation of free trade agreements, focusing on the...

Guest Contribution: “The Impact of Exchange Rate Movements on Exports”

Business & Finance / Economics : Econbrowser

An Analysis of Indian Non-Financial Sector Firms Today we are fortunate to have a guest contribution by Yin-Wong Cheung (HK City University) and Rajeswari Sengupta (Indira Gandhi Institute of Development Research). This post is base...

Guest Contribution: "The Impact of Exchange Rate Movements on Exports"

Business & Finance / Economics : Econbrowser

An Analysis of Indian Non-Financial Sector Firms Today we are fortunate to have a guest contribution by Yin-Wong Cheung (HK City University) and Rajeswari Sengupta (Indira Gandhi Institute of Development Research). This post is base...

Comments


Copyright © 2016 Regator, LLC